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SONARA’s insurance woes.

2019-06-25
No: 433

SONARA’s insurance woes.

Heads to roll!

The commission created to investigate the SONARA fire disaster that almost grounded refining activities seems to have laid hands of the first scapegoats. News that the company was not subscribed to a credible insurance policy has compromised the state’s chances of lending money to rehabilitate the refinery, expected take a whopping 1000 billion FCFA.

The incompetence of the company’s management was further laid bare when it emerged that insurance for the SONARA in 2019 had not yet been paid before the fire broke out. An attempt to convince insurers to backdate payment for an insurance policy that had been ignored met with a stone-wall from CIMA, the CEMAC insurance watchdog, to the chagrin of Cameroonian authorities.

The obvious scapegoats for such gross incompetence were the directors in charge of insurance policy. The social media is awash with information that at least five SONARA directors were detained at the weekend over the company’s insurance woes.

Those to bear the brunt include Louis-Marie Tiako, director of exploitation;  Derrick Takere, chef de projet phase 1;  Veronique Nkengue, finance and accounts; Alain Wa Londa,  Maintenance; and Mohaman Nayelwa in charge of Quality, hygiene, security, environment and inspection.

But observers say SONARA is only a victim of its poor management. Government administrators have been imposed as the company’s managers since its creation, leading to incompetent management. The non-payment of insurance for the company would have been avoided had SONARA been manned by management selected from a competition of candidates for the top job.

Commenting on this dereliction of duty at SONARA over the insurance question, a senior Barrister at Law said in the days of Bernard Eding, the company’s insurance policy was handled by the legal department, leading to prompt subscriptions. But since the days of Charles Metouck who is currently in prison, it is the department of Quality, hygiene, security, environment and inspection handling the operation. He expressed regret that SONARA had further compromised its chances of getting a loan to finance its rehabilitation because it had no re-insurance policy.